Buying at Repo’s
Ever since the economy tanked, it’s been a question of survival. So, as the country struggles to recover lost ground, what can you gain from the current financial climate? Try to take advantage of some of the growing opportunities freed up by this economic crisis, such as repo car auctions. Along with property, the automobile industry has been turned upside down and with repossessions at an all-time high, there’s no better time to buy.
Repo car auctions online?
Buying cheap wheels has never been easier; repo auctions online are a great way to get cars at insanely low prices. For those of you with experience with any online auctions, the process is not all that different. Getting an idea of the condition of the vehicle can be a little daunting but if you do proper due diligence, the risks can be minimized.
What can be found at a repo auction?
The type of vehicle you’re likely to find at a repo car auction would fall under one of the following descriptions.
- Low mileage, late model cars in great shape, often end up at repo auction because of some unforeseen life crisis such as illness or divorce. The conditions of these vehicles may be better than average because they would likely have been properly maintained.
- Then there’s the defaulter that could have been made bankrupt, or had some other problem that caused the loss of the vehicle. Mostly these will be late model cars in so-so condition, possibly with higher mileage than average.
- Lastly, we get to the clunkers, those poor old vehicles that have seen better days. Chances are the debtor was already in a tricky financial position when the vehicle was bought. These are unlikely to have benefited from regular services and occasional cleaning. Get your mechanic to give the vehicle a once-over as this type of car often has unseen troubles.
Where are the repo auctions?
Auctions happen all over the country but a robust and active center of trade is the State of New Jersey with massive selections of stock. Online repo auctions in NJ, in fact all NJ used car sales, are governed by some very specific laws.
Auto sales in NJ are only valid if the title papers are correctly reassigned to the vendor before the sale occurs. Someone selling on behalf of the real owner is not allowed; the individual on the title must be the same individual selling the car. If a vehicle comes from out of state, it has to be transferred according to state law where title was first supplied.
These are examples of how laws can vary from state to state. Whether you choose online repo auctions in NJ or elsewhere; check out state law before heading off with a fistful of dollars.
Where do I start?
OK, knowing what a car repo auction is, let’s talk about the due diligence necessary to make this experience profitable. How do you prepare for your first foray into the world of car repo auctions?
- Check out the pedigree of the vehicle you have set your sights on. First, decide on the makes and models you are most interested in. This short list is your guide. Decide how much you can afford then match your make, model, and price with information gleaned from the Kelly Blue Book.
- Next step is getting the VIN number of the vehicle you are interested in and checking it out. Note the number and research it by typing “how to check VIN” in your search engine to get to online answers.
- Credit Unions and banks are good places to begin looking, often they have repo cars on their books that they can arrange financing for.
- Remember, you buy it, you own it!
- The cheapest way to buy a car is buying from repo auctions
- All dirty marks are left for you to see. Banks don’t have the time or inclination to clean vehicles; this makes it easier to see how the vehicle was treated.
- Choose several vehicles you like and can afford before you start bidding. If the cars’ price goes higher than expected, move on to the next vehicle on your list.
- Financing a repo auction car is totally possible. First, contact the bank or finance company; they must contact the auctioneers before the auction.
- Otherwise, take enough cash with to pay for your purchase.
In this crazy economic environment, buyers should set the price they are willing to pay, set your maximum beforehand. If your bid isn’t accepted, walk away.
Delayed gratification, self-control, whatever you call it, can get you far more car than you expect!